Solution: When she was dating Mike, Katherine considered the possibility of becoming a stepmother to Mike's son MJ and placing him on her health insurance.


Question: When she was dating Mike, Katherine considered the possibility of becoming a stepmother to Mike's son MJ and placing him on her health insurance. At the same time, she considered making a switch in her health coverage. She took a look at a number of insurance carriers and determines the additional cost (per month) of having a child on her policy, given below:

125, 166, 136, 98, 115, 147, 142, 177, 109, 118, 131, 152

You may assume the data is normally distributed. Originally, Katherine thought there would be an additional cost of no more than $100 per month. At the .05 level of significance, does Katherine have evidence against her initial thought?

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